Rising Monthly Rents in Istanbul...a Boon for Property Owners and a Curse for Renters
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Rising monthly rents in Istanbul...a boon for property owners and a curse for renters.
In recent times, the city of Istanbul has been experiencing a rise in monthly rent prices, which exceeds annual inflation rates and poses many challenges to the residents of this city and its foreign residents, so what is the reason for this and how long will the situation continue in this way? This is what we will tell you in the following article:
Either cost or wait!
If you are residing in Istanbul or you will soon come to it and want to rent a property for housing, there is no doubt that you will have two options, either you rent a luxury property with an annual budget that may be considered huge compared to the minimum wage in Turkey, or you will spend a long time searching For the right housing opportunity for your needs, maybe a month, maybe two or more.
Where an Egyptian citizen shared his story with the Al Jazeera news website, after deciding to move to Istanbul for the purpose of housing and stability, but he was surprised by the scarcity of rental offers available in the area he wanted to move to.
According to him, he continued to search urgently for an apartment for rent in the Basaksehir for more than a month, but he did not find an offer that matches his needs, despite his contacts with more than ten real estate companies.
What is the reason behind the low rental offers in Istanbul?
This problem stems from several fundamental factors, most notably:
1- The number of foreigners coming to Istanbul is constantly increasing.
2- Choosing Istanbul for tourism instead of Antalya and Fethiye and the states affected by the recent fires.
3- Demolition of old buildings not equipped against earthquakes in several areas.
4- Cancellation of restrictions related to the Corona pandemic, after vaccinating more than 90% of the general public
5- The rise in real estate prices in Istanbul complexes, and consequently the increase in the value of its rent, to achieve investment returns commensurate with the value of the property.
And other reasons related to the depreciation of the lira, the rise of the dollar, and interest-reduction plans by the Turkish government.
Tourist rental in Istanbul flying in the sky:
While the annual rent in Istanbul has increased significantly, the rental prices for tourist apartments in Istanbul, those that are rented furnished and ready for direct housing, have soared during short periods that may be daily or monthly.
And since the 2021 tourist season is expected to last longer than usual with the possibility of its continuation even in the winter season, there will be no signs of a drop in prices, which started at $1,000 per month for one-bedroom apartments on the outskirts of Istanbul or in areas relatively close to the city center. , as the prices in the central areas such as Sisli, Taksim and the surrounding areas are not less than $2000, if any.
Areas affected by price hikes:
What Istanbul is witnessing today is not in one or two regions, but in its various regions, especially in:
- Basaksehir
- Bahcesehir
- Al-Fateh
- Esenyurt
- Beylikduzu
- Avcilar
- Basin Express
- Bakirkoy
- Escudar
- Zeytinburnu
- Maltepe
- Kadıköy
House rents in Istanbul, between harm and benefit:
While the tenants face challenges with the monthly rental prices of their homes that have exceeded the double in some areas, the profits of real estate owners multiply, especially those who chose to use their money to acquire many properties in vital places with the aim of renting them and collecting fixed monthly returns, which is the most prominent type of investment Real estate is the most popular one for its low risks and good returns to some extent.
Is there a break nearby?
The current situation does not indicate the possibility of lower prices soon, especially in light of the recent decline in the Turkish lira, but real estate experts expect that the crisis of limited offers available to those wishing to rent a property in Istanbul will be resolved, coinciding with the delivery of many projects and residential complexes located under Construction during the new year 2022.
Editing by Ramzy Real Estate Team ©
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